The Latest: Senate votes to repeal consumer rule

Markets Associated Press

The Latest on Republican efforts to repeal a banking regulation that would let consumers participate in class-action lawsuits. (all times local):

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9:15 p.m.

The Senate has voted to nullify a consumer-oriented rule that would let millions of Americans band together to sue their banks or credit card companies.

Vice President Mike Pence has cast the tie-breaking vote to stop the rule from going into effect.

Many consumers must go through an arbitrator to resolve financial disputes, but the Consumer Financial Protection Bureau finalized a rule that bans most types of mandatory arbitration clauses.

The rule exposed banks to large class-action lawsuits. Supporters say that possibility would help ensure banks, credit card companies and other lenders treat consumers appropriately.

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The vote comes months after House action and reflects the effort of the Trump administration and congressional Republicans to undo regulations that the GOP argues harm the free market.

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7 p.m.

The Senate is heading toward a vote to repeal a consumer-oriented rule that lets millions of Americans band together to sue their banks or credit card companies.

Now, many consumers are required to go through an arbitrator to resolve financial disputes, but the Consumer Financial Protection Bureau finalized a rule that bans most types of mandatory arbitration clauses.

The banking sector and other business groups have urged Republican lawmakers to keep the rule from going into effect. They say consumers actually get a better result in arbitration cases compared to class-action lawsuits.

Democrats say arbitration takes power away from ordinary consumers and places it with companies such as Wells Fargo and Equifax that already have an unfair advantage.

Democrats say nullifying the rule would be a victory for Wall Street.